Identical bills proposed by House and Senate lawmakers to provide rules of the road for taxing digital goods and services would immediately and significantly reduce state and local tax collections, the Center on Budget and Policy Priorities warns in a report.

The CBPP also said the bills, entitled the “Digital Goods and Services Tax Fairness Act of 2011,” would restrict the ability of state and local governments to levy sales and gross receipts taxes on fast-growing categories of consumer and business purchases.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.